The state-run Korea Institute for Industrial Economics and Trade has revised down the nation’s real gross domestic product(GDP) growth outlook for this year from two-point-one percent to one percent.

In a report published Tuesday, the institute said it expects the real GDP growth rate to post zero-point-five percent for the first half of the year and one-point-four percent for the second half.

The report predicted that the country’s sluggish exports will intensify amid uncertainties surrounding U.S. tariffs and forecast a limited recovery in domestic demand, despite the imminent arrival of a new government and the impact of an extra budget.

The institute expects exports to fall one-point-nine percent on-year to 670-point-six billion U.S. dollars and imports to drop two-point-one percent, resulting in a trade surplus of 52-point-four billion dollars.

With the state-run Korea Development Institute having downgraded its 2025 growth outlook from one-point-six to zero-point-eight percent, attention is now focused on whether the Bank of Korea will follow suit during its monetary policy meeting Thursday.